BTIG analyst Jake Fuller has maintained their neutral stance on BKNG stock, giving a Hold rating yesterday.
Jake Fuller has given his Hold rating due to a combination of factors including the complexity of the Booking Holdings’ 2024 guidance, as well as near-term trends that align with company guidance. The 2024 outlook presented by the company is somewhat challenging to interpret, especially considering the adjustments needed for operating expenses due to charges and accounting changes. Despite these challenges, the expectation is that room nights will grow, albeit at a slower pace than bookings, with the guidance likely factoring in around 7% growth. Additionally, Fuller’s assessment incorporates the potential leverage on marketing expenses, coupled with assumed changes in sales, general, and administrative expenses, and a notable increase in fixed costs after adjustments.
Fuller’s report also includes updated financial estimates for 2024 that take into account the timing of Easter, which affects quarterly revenue recognition. While year-long projections for room nights and bookings remain stable, slight modifications have been made to the second-quarter revenue and EBITDA estimates. The near-term trends suggest that Booking Holdings is on track with its first-quarter room night growth guidance, which is supported by Fuller’s own tracking data for February. Furthermore, the valuation analysis indicates that Booking Holdings’ stock is trading within its historical price-to-earnings range, leading to the conclusion that the shares are fairly valued at the current price, thus supporting the Hold rating.
Fuller covers the Consumer Cyclical sector, focusing on stocks such as TripAdvisor, Booking Holdings, and Airbnb. According to TipRanks, Fuller has an average return of 7.7% and a 49.79% success rate on recommended stocks.
In another report released yesterday, Bernstein also maintained a Hold rating on the stock with a $3,636.00 price target.
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Booking Holdings (BKNG) Company Description:
Founded in 1997 and based in Connecticut, Booking Holdings, Inc. provides an online platform for making travel and restaurant reservations. The company offers its services through the following brands: Booking.com, KAYAK, Priceline, Agoda, Rentalcars.com, and OpenTable.
Read More on BKNG:
- Booking Holdings Stock (NASDAQ:BKNG): Bullish after Strong Q4, First-Ever Dividend
- Booking Holdings price target raised to $4,100 from $3,677 at Argus
- Booking Holdings price target lowered to $4,260 from $4,380 at Seaport Research
- Booking Holdings price target raised to $4,100 from $3,600 at Susquehanna
- Booking Holdings price target raised to $3,950 from $3,600 at JMP Securities
